The Implications of Ecommerce During the Pandemic

BecomingForYou launches a physical store while thriving online. Why is this necessary?

The consumer is always evolving. How eCommerce sites work is also evolving with innovative tech, dynamic market strategies and shifting profitability. One year (and counting) of the pandemic has changed how we shop and what we buy. In the years before COVID-19, developed countries usually have shown a higher share of active online shoppers as internet access is available at a broad scale. However, over the first half of 2020, COVID-19 evolved into a global pandemic affecting people’s daily lives worldwide. For the first time, digital technologies offered an alternative channel for maintaining business activities, social interactions and consumption in times of strict preventive measures such as lockdowns.

The Canadian e-commerce company, which accommodates 1.7 million businesses across the globe, issued a report showing how consumer behaviour and patterns have been affected while spending this time at home, focusing on entrepreneurship and small/home-owned businesses. As a result of social distancing laws, more consumers opt for contactless and online buying, with 46 per cent of consumers uncomfortable with in-store shopping. According to Shopify, contactless payments and online buying have surged by 122 per cent in the last year.

E-commerce sites in Bhutan are a la mode. Digital marketing is something anyone can do with a swipe on their smartphones. The rise of e-commerce has exploded, with total revenue reaching $3.5 billion in 2019. As of July 2019, there were more than 31 eCommerce licenses handed out. This is a huge step forward for Bhutan, considering that the eCommerce policy is fairly new to the dominating brick and mortar people in business.

With the world on high alert due to the Covid-19 outbreak, the numbers skyrocketed in the first month. Online retailers in the United States reported a 68 per cent increase in revenue as of mid-April. The pandemic has surely driven people to rely on internet services more than ever before, from shopping and banking to instant messaging.

Digital adoption

Digital adoption solutions have taken a phenomenal leap for both productional and organizational levels. Businesses were forced to prioritize this technology. The implications of the pandemic have accelerated digital adoption. The increasing use of telecommunication to work and stay connected has shaped our everyday habits from what we eat to what we buy. Economists have recognized automation and the deployment of new technology as key drivers of change in labour markets and the character of work even before the epidemic. Firms are responding to the crisis by embracing more technology, according to new evidence. According to a new World Bank working paper, “approximately 34% of businesses have increased (about 22%) or begun (around 8%) their usage of the internet.”

Employment opportunities.

There is more to what meets the eye in a developing and expanding market. As of May, research projected that the epidemic had cost the retail industry 2.1 million jobs. Businesses, employees, and recent graduates were all trying to make ends meet. For online businesses, COVID-19 thrust a decade of growth into one single year.

Increased demand for workers in all sectors

The bloom of eCommerce opportunities led to an increase in jobs in the retail and clothing industry and all kinds of sectors. With a current revenue of $759 billion in 2021, it will grow $1002 billion in revenue. Consider all the advantages of online shopping. Everything is just a snap away from your doorstep. The website has an array of options to choose from, and everything is catered to fit you. This convenience has driven consumers to the doorstep of eCommerce businesses.

To create this convenience, hundreds of workers are needed for packaging, design and delivery. To prioritize customer service and quality, online businesses cannot spare hiring workers in all these sectors. It has been rumoured that eCommerce displace people of their jobs, but contrary to that belief, it has created 178,000 new jobs over a span of 15 years. At BecomingForYou, the staff keeps evolving into a diverse and competent team while employing around 80 active affiliate marketers.

Brand loyalty

Brand loyalty has a completely different meaning now. Maintaining customer trust and creating value can be hard when you are communicating through a screen. But this pandemic has left us no choice. Research indicates that brand preference has changed 75 per cent due to the rapid changes in the world. As a result, customer loyalty and trust are being put to the test. Businesses want to keep providing quality service while benefitting from the growth this pandemic has given way to. Maintaining lines of communication with stakeholders and finding new ways to drive revenue are ways to keep brand loyalty.

The only way forward is for companies to look ahead and consider improved offerings and strategies which will answer market gaps today while proving legitimate for future situations.

Post covid era

While the COVID-19 issue has increased e-commerce dynamism, it has also highlighted pre-existing obstacles that prospective e-commerce entrepreneurs confront worldwide. Regulatory disparities such as access to online payment options, dependable internet and energy connections, the prohibitive expenses of trading across borders, visibility in online searches, and advertising and selling are just a few examples. The crisis has also highlighted the necessity of bridging the digital gap inside and between nations. Furthermore, COVID-19 highlighted the need of addressing concerns regarding how small producers, sellers, and consumers in emerging and transitioning economies may profit from e-commerce prospects.

“Feeling” products online.

Without physically visiting the store, consumers need to “feel” the products and try out different options. To bridge this gap, technology comes in. ensuring accurate product information with the correct images and descriptions will enable customers to get the same feeling as shopping in a physical store. In addition, providing an automated and personalized experience will enhance the brand name.

Assemble the basket.

Retailers will need to focus on personalizing the best assortment for each buyer, constructing baskets based on known customer traits, preferences, and categories. As a result, customers will have less chance to explore and touch and feel items in shops.

Physical location

An omnichannel sale is a cross-sectional approach to delivering good customer service through all possible sales channels and touchpoints. This includes traditional services, brick and mortar shops, and new innovative techniques such as online shopping. It has been found that companies with omnichannel sales retain 89 per cent of their customers. Becomingforyou took advantage of this strategy and opened up a physical store in Thimphu. According to the CEO, Bikash K Rai said, “ establishing a physical store was a strategy pivot to instantly provide an in-store shopping experience to our customers in and around Thimphu. However, many of our customers prefer in-store shopping to online shopping.”

Omnichannel experience goes beyond consumer behaviour. It can also help scout for potential employees. Marketing these jobs for hire on social media has become a norm. An eCommerce displaces the traditional way of doing business. That not always the case when presented with new strategies.

Time to transform

A transitional economy is written in the future. This refers to adjusting from a centrally planned system to a market-led system where market forces determine prices. Given that many nations are still recovering, now is the moment to reset, pivot, and think big to adapt company processes to meet the new digital expectations. A better understanding of changing customer requirements can lead to a legit plan for the future and respond to signs of recovery as they emerge.

Policymakers must consider norms and laws that will regulate the digital labour market. Even in mature economies, the policy discussion is far from over. Policymakers need to balance the flexibility and job-creating potential of the digital labour market with the need to protect workers and expand the coverage of social safety nets.

In an everchanging market such as eCommerce, the flow is rapid and intensive. The evolution in this sector has provided working conditions where both employees and employer can thrive. Yet, as much as digital touch is significant to a business, it cannot operate without a human one.